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The FxPro Analyst Team

US Political Tensions Return

US Political tensions took center stage on Wednesday. USD lost ground following President Trump's decision to disband two advisory councils, staffed by CEOs, and after he slammed Republican members of Congress who were critical of his recent remarks blaming weekend violence in Virginia on anti-racism activists as well as white nationalists. Eight Chief Executives, and other industry leaders, on the Presidents Manufacturing and Jobs Initiative groups had stepped down before Trump announced the ...

The FxPro Analyst Team

USD Bears Return

USD bears returned to the market as the tensions between North Korea and the US have greatly “cooled” this week. North Korean media reported that North Korea Leader Kim had delayed his decision to fire missiles towards Guam while he waited to see what the US did next. On Wednesday, President Trump praised North Korean leader Kim Jong Un for a "wise" decision. Minutes, released on Wednesday, from the Fed's July meeting showed the central bank growing warier about recent weak inflation data, ...

The FxPro Analyst Team

Markets Welcome Risk-On Sentiment

With tensions abating between the US and North Korea USD bulls returned. A North Korean media report indicated that dictator Kim Jong Un had decided not to launch a threatened missile attack on Guam. In addition, South Korean President Moon Jae-in vowed to avoid a conflict at any cost. With a move away from safe havens both Gold and JPY suffered losses on the day. USD also appreciated against GBP, pushing GBPUSD to a 5-week low, after UK inflation held steady in July and raised questions as to ...

The FxPro Analyst Team

Risk Appetite Returns

North Korea's official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam. President Trump did not respond to this latest comment but Defense Secretary Mattis warned that the US Military is ready to intercept any missiles fired by North Korea. This latest “war of words” relieved market concerns with a move away from safe havens and a degree of risk-on sentiment. To add to USD ...

The FxPro Analyst Team

Tensions Cool Down

A degree of risk-on sentiment returned to the markets, as the tensions between the US and North Korea appear to have “cooled” down. On Monday Japan’s Q2 growth topped estimates, showing higher domestic demand. Japan’s growth accelerated to a 4.0% annualized rate and, whilst inflation stays weak, it is not likely that the Bank of Japan will reign in its massive stimulus program any time soon. China’s economy posted its worst showing this year as curbs on property, excess borrowing and ...

The FxPro Analyst Team

Geopolitical Tensions = Risk Aversion

On Thursday, US Producer Prices unexpectedly fell to 1.9% in July (forecast was 2.2%), recording its biggest drop in nearly a year and suggesting further constraints in inflation that will likely delay a Federal Reserve interest rate increase. Additional poor data from the US was released by the US Department of Labor for Initial Jobless Claims for the week ending August 4th. Markets had expected a decline from the previous release of 241K but were surprised with an increase to 244K. A ...

The FxPro Analyst Team

US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned, as President Trump said, in response to a Washington Post report on North Korea’s nuclear capabilities, that “North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen”. North Korea has claimed it is examining an operational plan for firing a ballistic missile toward Guam. With ...

The FxPro Analyst Team

USD Bulls Retreat with Trumps “Fire & Fury” Threat

The latest Chinese economic data points to steady global demand. The world’s second-largest economy trade surplus grew for a 5th consecutive month in July, as demand for Chinese goods held up in the face of growing tensions with the US. Another set of unexpectedly positive data out of the US saw USD gain against many of its peers on Tuesday. The US Bureau of Labor Statistics JOLTS Job Openings (Jun) release of 6.163 million was 388K better than the expected release of 5.775 million, resulting ...

The FxPro Analyst Team

Markets Look to OPEC

As OPEC began its 2-day meeting in Abu Dhabi on Monday, to align its members to adherence to output reductions, data from S & P Platts revealed that Libya and Nigeria pushed OPEC’s crude oil output in July to the highest level this year at 32.82 million barrels a day. Per Platts; Libya and Nigeria (both exempt from the cuts agreed last year) oil production went up 210K barrels per day in July, 210K bpd and 1.81 million bpd respectively. If the data from Platts is correct then OPEC’s output in ...